Finance Minister Mangala Samaraweera said that over the years, a lack of economic stability has been a major hindrance to doing business in Sri Lanka where economic growth in the post war years was dominated by debt financed state investments. 

The Minister said that it is in this context that the government has shifted to a private sector, export, and FDI, led model of economic growth where the state will play a key role in smart regulation, setting a robust institutional framework, and targeted interventions to ensure social justice and equity. 

Speaking at the Sri Lanka Investment and Business Conclave 2018, organised by the Ceylon Chamber of Commerce yesterday, Samaraweera said that "economic stability is a sine qua non for a private enterprise led growth model."

The Minister pointed out that while the government was able to introduce several key reforms towards ensuring long term economic stabilization, Sri Lanka also achieved a primary budget surplus for the first time in many decades in 2017.

"The Inland Revenue Act came into force on April 1^st 2018, with the aim of simplifying and rationalizing the tax regime. This legislation creates a transparent and predictable tax regime, shifting away from ad hoc tax changes that hinder investment. Our objective is to establish a level playing field which will encourage competition and contestation which would be of benefit to consumers and a competitive economy," Samaraweera said.

 Investment opportunity

Samaraweera further said that a crucial element of the investment decision is ensuring a competitive business climate.

 "Ensuring smooth processes in starting up and expanding a business has been a major policy objective of this government. As mentioned earlier, the Inland Revenue Act has simplified the processes pertaining to taxation. The business registration process was streamlined and Register of Companies (RoC) now facilitates business registration through a single website allowing company registration within a day," he added.

He said that several other steps relating to ease of access to and registration of land, construction permits, and other elements relevant to the business climate is also being addressed by the government.

 Connecting with the globe

Samaraweera said that Sri Lanka is in the process of implementing comprehensive unilateral trade liberalization that includes the rationalization of para-tariffs which add costs to business and consumers.

 In addition to unilateral trade reforms, the government is in the process of entering into strategic trade agreements with key regional economies.

"We recently signed our very first comprehensive FTA with the Singapore and two other comprehensive FTAs are being negotiated with China, India, and other ASEAN nations. Along with GSP + Sri Lanka will soon have market access to India, China, and Europe, making the country a unique destination for investment. This network of FTAs will enable Sri Lanka to meaningful integrate into regional value chains to drive future trade and economic growth," Samaraweera added.

Reforms ahead

Touching on reforms, Samaraweera said that the government has been working on bringing in key reforms during last two years with Budget 2018 marked as a milestone of reform agenda. A new Foreign Exchange Management Act was introduced last year, easing many restrictions imposed on external sector transactions.

The reform agenda items include, 

1. i)Eliminating para- tariffs on imported inputs and components
2. ii)Removing barriers to trade and FDI in services

iii) A “Single Window” for investment approvals

1. iv)Eliminate Non-Tariff Barriers in exporting as well as importing goods
2. v)Targeted promotion of identified sectors for investment in Sri Lanka
3. vi)Establishment of new export-processing/investment zones

vii)  Improvements to business climate through digitization of key processes such as land registry and integrating government agency approvals.

 The Minister emphasized that the government is committed to further facilitation of the investment climate through a well thought out programme for eliminating barriers in the business environment. 

"With a clear set of comprehensive investment incentives spelled out, Sri Lanka is poised to be a major source of investment for companies looking to use Sri Lanka as a base to tap into the fast growing Indian Ocean region," the Minister said.

The Sri Lanka Army, making inroads into the reconciliation and development process has once again returned over 120 acres of private land used by troops in Thelippalai, Karachchi and Maritimepattu areas in the Northern Province, the Army Media Unit said today.

Documents related to the land patches in Thelippalai, Jaffna (62.95 acres), Karachchi, Kilinochchi(5.94 acres) and Maritimepattu, Mullaittivu (52.0 acres) that make up a total of 120.89 acres in the North were delivered to the President who in turn handed them back to the District Secretaries of Jaffna, Mullaittivu and Kilinochchi for onward release formalities.

Lieutenant General Mahesh Senanayake, instrumental in releasing private and state lands as much as possible in the North and East for legitimate owners,hitherto being used by the Army without compromising national security concerns, maintains that the Army should fully cooperate with state authorities in their attempts to foster ethnic harmony and co-existence in the country, the Army media unit said.

Wildlife Minister Sarath Fonseka says that he will resign from his ministerial portfolio if no assistance is received from the government to provide a solution with regard to the elephants in the Sinharaja reserve within the next 3 months. 

He made these comments during a discussion held at the Rambuka Rajawatta Temple on Tuesday (19) regarding wild elephants. 

The government had planned to relocate the two elephants remaining at the Sinharaja forest reserve to the Horowpathana holding centre when this operation had commenced on June 14. 

However, on Sunday the operation was halted on the instructions of the President. 

Source : Ada Derana

Finance Minister Mangala Samaraweera said today that Cabinet approval was granted to remove the 15% VAT imposed on doctors’ consultation fee, channeling fee and professional charges from July 1st of July.

Addressing a press conference held at the Treasury today (19), the Minister also stated that the government plans to increase the budgetary allocation of the health sector to 5% of the GDP by 2020.

The deed confirming the official ownership of the land which the Sri Jayawardenapura Kotte Parliamentary complex is located on is set to be handed over to the Speaker Karu Jayasuriya by Minister of Lands and Parliamentary reforms Gayantha Karunatilleke today. 

Uptodate the ownership was based on a grant by former President J.R Jayawardene. The parliament has therefore not had an official deed for around 40 years sources say.

A BRIT widow whose husband was murdered in Sri Lanka a year ago is afraid she will die in the country as she can't afford to fly home.
Diane De Zoysa, 60, gave up everything to move to the country with her 26-year-old husband Priyanjana in 2016.


Diane De Zoysa, 60, fears she will die in Sri Lanka after moving it there to be with her husband.

She married Priyanjana, having known him just seven months in 2012, and moved to Sri Lanka with him four years later. She sold her Edinburgh home to move after meeting Priyanjana on a holiday, reports the Daily Record.

Diane says she now has nothing after giving him £100,000, buying a house in his family's name and spending £31,000 helping him set up a minibus service.

Tragedy struck when Priyanjana was shot three times on May 30, 2017, by blackmailers who learned he had come into money.

Her 26-year-old husband Priyanjana was murdered by blackmailers last year 

She said: “I feel like I’m stuck here forever and I will die here. In order for me to leave Sri Lanka, I need to pay to have my ­possessions shipped back home.

“Then I need money for a flight and to pay to have my possessions in storage until I can find a flat. Not much has changed since last year except that I am in a lot of debt.”

The Brit says she will not leave Sri Lanka without her savings, which are tied up in the home she bought and other assets in the country.

She added that she feels like "a prisoner" in her own home as Priyanjana's family will not let her travel far on her own.

Diane also blasted the British High Commission in Colombo claiming they have "done nothing" to help her out of the situation.

Former Director of the FCID, Senior DIG Ravi Waidyalankara is back at work following his retirement. He will continue to head the FCID on

special cabinet approval based on the recommendation of the Police Commission. 

Senior DIG Ravi Seneviratne had been overlooking the division during Waidyalankara’s absence. 

According to sources he has been tasked with expediting the legal process of files handed over to the Attorney General's Department on corruption during the Rajapaksa regime. 

IGP Pujith Jayasundara had recommended that due to two investigations into Waidyalankara his pension should not be paid till their conclusion. However, the Commission had denied acting accordingly.

President Maithripala Sirisena says that the Government is paying close attention to save children from various menaces in society, and that all parties should offer their unconditional support in this venture.

The Daruwan Surakimu (Let’s Protect Children) National Programme is a prominent step towards that vision, the President said, adding that the main objective of this programme is to build a prosperous future for the children while ensuring their safety, education and health.

Sirisena made these remarks addressing the Kilinochchi district Summit of the ‘Let’s Protect Children’ National Programme held at the Kilinochchi Central College, yesterday (18). 

For the first time in the history, this programme will be implemented as a special project jointly with 14 ministries, 05 epartments, 06 institutions, 09 local government bodies and civil and voluntary organizations. LKR 5232.6 million has been allocated for this three year plan from 2017 to 2019, the President's Media Division said.

UNP District Parliamentarian Buddhika Pathirana was sworn in as the Deputy Minister of Industries and Commerce before President Maithripala Sirisena a short while ago, the President's Media Division said.

The distribution of local films, which was handled by four private companies, would come under the purview of the National Film Corporation with effect from today, National Film Corporation Chairman Sithendra Senaratne said.

“Earlier the distribution of films was handled by the five agents, including the National Film Corporation, and four private companies,” he said. 

The final decision was taken by the board along with the line Ministry to take over the distribution of films under the Film Corporation with immediate effect.

"President Maithripala Sirisena appointed a committee to look into the problems of the cinema industry as well as to identify such issues and to recommend suitable remedies. 45 experts who were involved in the industry contributed to the report that was submitted to the President recently," Senaratne added.

The President had then directed to take necessary action based on the recommendations made in the report. The National Film Corporation will take necessary steps to implement a new system on local film distribution soon.

Minister of Petroleum Resources Development Arjuna Ranatunga stated that they will be introducing a new type of Petrol for the benefit of trishaws and motorists. He further stated  that they are still carrying on experiments.

“We reluctantly (had to) increase the price of fuel over the last few days. I’m aware of the trouble this has caused the public. We are following new experiments to give advantages to the public by another way. Therefore, we decided to introduce a new type of Petrol for the benefit of trishaws and motorists. We expect the experiments to be successful soon”, the Minister added. 

Ranatunga made these remarks during a ceremony held today to hand over 13 appointment letters to Engineers at the CPC premises.

Minister of Finance and Media Mangala Samaraweera has instructed Finance Ministry officials to allocate LKR 500 million immediately for 25,000 households in Monaragala district without adequate sanitation facilities.

The Minister was in Monaragala on Monday (18) on an inspection tour with Ministers Ranjith Madduma Bandara and Vijith Wijathamuni Soysa. 


Minister Samaraweera said that the allocation of LKR 500 million to develop proper sanitation facilities in the Monaragala district will be in addition to the LKR 2.2 billion allocated to 11 Divisional Secretariats under the Gamperaliya programme, the unity government's ambitious rapid village development programme.